advice on TFSA

[SauRoNZA]

How does he have a TFSA without a tax number?

Neither of mine have either.

Not required, since there is no tax applicable yet.

 

[Thamza]

According to my understanding, the tax implications fall on the parent/guardian. I read that somewhere about 2 years ago when I was doing my own research around the TFI Accounts. This means that if you contribute R40k into your child's TFI Account, the tax implications of the R4k will be paid by you, the parent, that is, you owe SARS R1600. At least that is what I know.

 

[YellowMountain]

Apologies if its a silly question, but does the investment costs that you incur when purchasing a product in a TFSA contribute to your overall TFSA contribution?

Example:

Buy S&P500 on EE (for example):
Cost: R100 000
Investment cost: R400

Total: 100 400

 

[Speedster]

Apologies if its a silly question, but does the investment costs that you incur when purchasing a product in a TFSA contribute to your overall TFSA contribution?

Example:

Buy S&P500 on EE (for example):
Cost: R100 000
Investment cost: R400

Total: 100 400

Yes. You transfer funds to your TFSA, limited to R36k pa. Investment fees are then taken from these funds.

 

[YellowMountain]

Yes. You transfer funds to your TFSA, limited to R36k pa. Investment fees are then taken from these funds.

Thanks, appreciate it.

 

[Sideshow Bob]

OM likely registered the child for tax.

In slightly other news, why on earth would you have a TFSA with OM?!

heh. I briefly worked in OM, Cpt and have no idea how that company survives till now. Absolutely lazy work culture.